H.C. Wainwright analyst Heiko Ihle has reiterated their bullish stance on TRX stock, giving a Buy rating yesterday.
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Heiko Ihle has given his Buy rating due to a combination of factors that highlight the potential for Tanzanian Royalty Exploration’s growth and profitability. The company’s financial results for FY3Q25 showed a significant increase in revenue compared to the previous year, driven by higher average gold prices despite a slight decrease in gold ounces sold. This improvement is attributed to accessing higher-grade ore blocks following a successful stripping campaign, which is expected to support stronger production in the coming quarters. Additionally, the company’s improved working capital position, bolstered by strong cash flow, further supports the positive outlook.
Another factor contributing to the Buy rating is the gold sale service agreement with the Bank of Tanzania, which should enhance margins by reducing the royalty rate on domestic sales. This agreement not only benefits revenue and cash flow but also strengthens the company’s social stewardship in Tanzania, potentially leading to long-term advantages. Furthermore, the updated precious metal price deck reflects favorable macroeconomic conditions that have increased the spot prices of gold, silver, and copper, suggesting continued investment in safe-haven assets. These elements collectively underpin the positive recommendation for Tanzanian Royalty Exploration’s stock.
In another report released yesterday, Roth MKM also maintained a Buy rating on the stock with a $0.85 price target.
TRX’s price has also changed slightly for the past six months – from $0.319 to $0.344, which is a 7.84% increase.